Airline Industry Statistics

Reliable Airline Industry Statistics to Guide Your Business Decisions

Airline industry statistics show that with $3.4 billion booked
online in 2006, airline tickets comprise four fifths of the ANZ online travel
market. That figure will reach $3.8 billion in 2007 and surpass $4.5 billion in
2009, accounting for 72% of the supplier segment (see Table 2.1). The LCC-driven
airlines segment will continue to be largely responsible for segment growth in
the direct channel. However, growth will slow in 2006-2009 as the domestic air
seat-only market becomes saturated. Online penetration in 2006 was 29% and will
grow to 35% by 2009. Both online travel agencies and traditional travel
agencies will increase their share by offering choice, dynamic packaging and
enhanced customer services for the international and Trans-Tasman traffic, which
continues to grow. International air accounts for the majority of the air revenue
opportunity.

Airline Industry Statistics

ANZ has one of the least dynamic APAC domestic aviation markets
in terms of consumer choice. Just two airlines operate on the high-traffic
routes such as Sydney – Melbourne. Thus far, this has been the primary
challenge for full-service Online Travel Agencies, where the absence of markets
with multiple competitive routes provides very little opportunity to add value.
Similar market structures exist in Japan, Korea and China, where the lack of
air fragmentation inhibits online agency growth.

The collapse of Ansett in 2001 created a domestic monopoly in
Australia, while Air New Zealand also struggled. Airline industry statistics
show that a turning point occurred in 2002, when Richard Branson launched the
LCC Virgin Blue, transforming domestic air travel by capturing 30% of passenger
volume within four years.

Australian flag carrier Qantas, conversely, was slow to embrace
e-commerce and did not implement online distribution in its leisure and
domestic businesses until 2003. At that point, Qantas rapidly implemented
e-ticketing, changed its pricing structure to a one-way segment fare, simplified
fare filing, outsourced reservation hosting systems to Amadeus and eliminated
commissions on domestic fares. On the demand side, Qantas launched Qantas Red
E-deals for promotional and last-minute fares. By 2004, Qantas was ANZ’s
most-visited travel Web site. Currently, an estimated 35% of Qantas’ domestic
volume is booked online, as well as 8% of its international revenue. To date,
online travel agencies have not had a material impact on the airline's online
booking volumes, but that will change with the growth of dynamic
packaging in ANZ.

Despite its extensive if belated efforts to develop online
distribution functionality, Qantas has been slow to monetize the non-air
opportunity (unlike Air New Zealand), and has thus far been unable to leverage
its subsidiary Qantas Holidays, one of Australia’s biggest wholesalers, in the
retail travel market. For more airline industry statistics, download any
Phocuswright Online Travel Overview.